The gap between ex-UK/EU and ex-US scrap prices for Turkey narrowed after the latest deals signed from the EU and the Baltic region, with prices characterized by greater equilibrium earlier this week.
Sources report that Turkish mills are evaluating their positions, taking their finished steel sales volumes and prices into consideration, while scrap sellers are not adopting an aggressive stance. Turkish buyers report that there are only three concrete scrap offers in the market, with all three suppliers seeking prices higher than current market levels. Turkish mills are showing little interest in these offer prices, pointing to the lack of upward movement in their finished steel sales prices. As a result, the current levels of $406-412/mt CFR are likely to be repeated in the coming deals, particularly after the news this week of a possible agreement between the sides in the Iran war. With oil prices declining sharply to settle at around $100 per barrel today, May 8, a limited downward correction in freight rates is anticipated by some players.
European exporters continue to collect scrap at €295-300/mt DAP, sources added, while they attracted attention to the appreciating euro-dollar exchange rate. The rate is at 1.17 today, May 8, and the influence of the exchange rate may have more importance in EU-based exporters’ cost structure in the coming period. German sub-collectors believe the current bids coming from export yards are workable and that this year is better for now in terms of margins as compared to 2025.
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap prices in CFR terms have increased by 0.37 percent week on week. The prices are now 3.02 percent higher month on month in the deep sea segment, with prices being in the range of $406-412/mt CFR.
Some mills in the US Midwest have announced changes to ferrous scrap prices to kick off the May trading cycle, with a $20/gt increase on prime grades and no change for obsolete grades. Yet it is still a developing situation and other mills are rumored to be about to announce a sideways trend across the board very soon. Even at the time of publication, there are reports of prominent mills in the Midwest purchasing obsoletes sideways, while large sellers are offering them #1 busheling at a price unchanged from the April settled price. Mills in the Southeast are reportedly seeing these offers for #1 busheling as well.
In Chicago, the price of #1 busheling remains at $450/gt ($457.2/mt) delivered to consumer while shredded has fallen by $20/gt ($20.3/mt) to $430/gt ($436.9/mt) delivered, finally separating the grades by $20/gt, the usual spread between the two. HMS I in Chicago has fallen $20/gt ($20.3/mt) to $370/gt ($375.9/mt) delivered. In Detroit, it is a similar story, with #1 busheling remaining at $455/gt ($462.3/mt) while shredded has dropped $20/gt ($20.3/mt) to $430/gt ($436.9/mt) delivered.
Prices for ferrous scrap to US East Coast (USEC) docks remain unchanged this week for HMS I at $280-290/gt ($284.4-294.6/mt) delivered to export yards in New York and Philadelphia. Yet shredder feed to exporters in the same region has risen to $265-275/gt ($269.2-279.4/mt) delivered this week, from the previous week’s $260-265/gt ($264.1-269.2/mt) delivered. It has been a constant across the US East Coast, the Midwest and even Canada that there is currently a tight supply of shredder feed, as shredders selling to the domestic market are also looking for material. Negotiations are ongoing and even several of the mills’ official positions and announcements are undetermined at this time.
Contacts on the US West Coast report that prices for containerized scrap to docks remain unchanged. In Los Angeles, the price of HMS I/II 80:20 remain unchanged at $340-345/mt FAS Long Beach port, while the price of shredded remains at $360-365/mt FAS port, and for #1 busheling it has stayed at $365-370/mt FAS port. Containerized prices in the San Francisco Bay Area have also trended sideways, with all levels $5/mt below their southern Californian counterparts.
US East Coast (USEC) ferrous scrap prices to the docks have remained unchanged this week, even after some sellers saw their own selling prices increase by $10-15/gt. Still, some of them are integrated into the higher end of the already established price ranges. At New York and Philadelphia docks, the price of HMS I remains in the range of $280-290/gt delivered to export yards, while some sellers who had been selling the grade to exporters at $280/gt delivered have been selling at $290/gt delivered this week.
The Mexican domestic ferrous scrap market has remained stable this week, with the exception of a few grades that received minor price adjustments. After some upward corrections across the board issued last week by a minority of mills, buyers in Mexico are expected to wait for the US market to settle in May before issuing any further movements. Scrap consumption is still reported as healthy in Mexico and, despite mills refraining from issuing upward corrections in the previous week, some have had to resort to them while supplementing their tonnages with imports.
In central Mexico, prices for HMS I have trended sideways at MXN 6,600/mt ($378/mt) delivered to consumer, while P&S 5ft increased by MXN 500/mt ($29/mt) to MXN 7,200/mt ($412/mt) delivered due to a recent surge in demand for the grade and its close parity with HMS I last week, with a difference of only MXN 100/mt ($6/mt). #1 busheling rose by MXN 200/mt ($11/mt) to MXN7,300/mt ($418/mt) delivered as some buyers have issued a small upward correction. MST is unchanged at MXN5,500/mt ($315/mt) delivered to Mexican mills.
After a long period of stability, the upward trend already heralded in past weeks is finally materializing in the Italian scrap market. With mills working at high capacities, scrap demand stands at good levels, and, although the finished steel market continues to creak, scrap prices remain under pressure from cost increases and from the international markets.
According to scrap traders, the first scrap sales in May in the local market in Italy have been concluded with increases of €5-10/mt and, from the first rumors, it also seems likely that there will be a new round of increases by €5-10/mt next week, leading to an overall hike of €15-20/mt in the first two weeks of the month.
New local scrap prices in Italy are standing at the levels shown in the table. However, it should be specified that, within the HMS grade (E1/E3), E1 prices stand in a range of €295-305/mt delivered, while E3 prices are at €310-325/mt delivered or even higher for special grades.
The first discussions on scrap prices in Germany for purchases in May have begun this week.
Although the scrap market in Germany showed signs of weakness in 2025 due to the overall contraction of the steel segment and with crude steel production declining during the year, the latter has recovered slightly in the first quarter of 2026.
Consequently, scrap demand in the country has remained at overall stable levels, as confirmed by various market sources, and German steel production is expected to continue smoothly in May.
However, general market conditions are still showing an overall scarcity of demand compared to the usual levels, and the expected increases in scrap prices - which according to the initial rumors should be in the range of €5-10/mt - are mainly driven by the higher costs borne by market players.
As far as the export market is concerned, no changes have been reported regarding collection prices of HMS I/II 80:20, which are still at around €300/mt DAP. On May 5, a possible deal for export of scrap to Turkey by a major international trader based in Germany also surfaced in the market, but the information has not been confirmed by the time of publication.
Taiwan is still not receiving scrap offers from Japan, while ex-US offers have remained relatively stable. “The market has been sluggish as demand is very weak because Chinese billet and iron ore prices have picked up sharply this week. Buyers are forced to buy small quantities,” a source added.
Offer prices for ex-US HMS I/II (80:20) scrap in containers to Taiwan have remained relatively stable over the past week, moving from the range of $363-370/mt CFR to $362-373/mt CFR. For the third week in a row, Japanese scrap suppliers have been absent from the Taiwanese market. A Taiwanese source reports that it is still difficult to receive offers from Japan, with the Golden week holiday last week disrupting trading, which is still muted this week.
Pakistan’s import scrap market has moved up over the past week, supported by sellers' firmer targets and recent bookings at higher levels, though buyers have remained cautious and have continued to purchase only according to immediate needs. Ex-UK shredded scrap has been offered at $425-430/mt CFR, up from $420-425/mt CFR heard last week, while UK-origin shredded scrap has been sold at $425-428/mt CFR Qasim and a deal for ex-EU shredded scrap is reported to have been signed at $426/mt CFR. Overall, the workable price range for ex-EU/UK shredded scrap has moved to around $420-425/mt CFR Qasim, while offers have mostly been heard at $425-430/mt CFR. Market sources have also indicated that continued uncertainty in the Middle East has added some pressure to import sentiments, with higher freight and energy costs and tighter shipping conditions limiting sellers’ flexibility in negotiations. Meanwhile, in the Pakistani domestic market, activity has remained subdued, with mills avoiding aggressive procurement amid weak finished steel demand. According to market sources, local 10-12 mm grade 60 rebar prices have been heard at around PKR 245,000/mt ($879/mt) ex-works, down from around PKR 260,000/mt ($932/mt) ex-works heard last week, while local scrap prices equivalent to shredded have been reported at around PKR 160,000/mt ($574/mt) ex-warehouse, mainly stable compared to last week.
Bangladesh’s import scrap market has remained weak, with buying activity still limited amid cautious demand from mills. Sentiment has remained under pressure from sluggish finished steel demand, monsoon-related disruptions, higher energy and freight costs, and buyers’ reluctance to commit to extended shipment periods. Ex-EU HMS I/II 80:20 scrap in containers has been offered at $390-395/mt CFR this week, while ex-EU shredded scrap in containers has been offered at $415-420/mt CFR, broadly in line with the respective levels heard last week. No fresh concluded deals for ex-EU/UK containerized scrap have been heard so far this week. Meanwhile, a deal for around 18,000 mt of HMS I/II 80:20 and PNS scrap from Singapore has been concluded at $349/mt CFR and $362/mt CFR, respectively. Market sources have stated that offers have come under pressure in line with weak buying interest in Bangladesh, while buyers are still trying to push for lower levels amid the slowdown in finished steel demand and the ongoing monsoon-related disruptions.
